0 like 0 dislike
10 views
asked in Corporate Law by

2 Answers

0 like 0 dislike
answered by

1. Discovery of a business idea: 

The first stage in company promotion is the conception of a new idea.It is the promoter who conceives the idea of setting up a business. If makes an assessment of the viability of a particular business.

2. Detailed investigation:  

Promoters attempts a definite examination of the practicality, benefit and future prospects of the development of the proposed action. To help them in this wander, they look for the help of masters, for example, contracted Accountants, Cost Accountants, Company Secretary, Engineers. Associations occupied with statistical surveying and other particular offices. Pros are in a position to make their very own target examination regions which may help the promoters. Choices must be taken with respect to the size, area, format, labor of the business.

3. Assembling the factors of production: 

If the proposed endeavor gives promise of success and the promoter is willing to undertake the risk of forming the business, steps must be taken to assemble various factors of production viz, land, labor, capital and managerial personnel. Assembly of resources involves making contracts for the purchase of material, land, machinery, etc.

4. Entering into preliminary contracts: The promoter enters into contracts with different parties

 

before the registration of the company. After registration, the company approves these contracts.5. Selecting the province in which registered office of the company will be situated.
6. Selecting the name and type of the company and confirming the availability of name from the registrar.
7. Getting together the required number of the subscriber to memorandum of association and articles of
association.

8. Determining the financial needs of the company and decide about the modes of financing.
9. Getting drafted the memorandum and articles of association.
10. To get done all the incorporation document prepared; filing statutory fees; getting the incorporation
certificate from the registrar.

11. Promoters select auditors, bankers and legal advisers for the company.
12. Promoters appoint necessary staff to run the operations of the company.
13. Make arrangements for collection of subscription money.  

 

14. Allot shares to shareholders.
15. Promoters decide about the place of office and location of factory and branches etc.
16. Submit at due time the post incorporation statutory documents with the registrar.
17. Purchase property for the company.
18. In case of public listed company prepare statement in lieu of prospectus or prospectus.
19. Promoters select underwriters and fix their commission etc 
0 like 0 dislike
answered by
  1. To disclose the liability and pay the secret profits if promoters have earned.
  2. Liability is up to the completion of contracts.
  3. Liability for statutory mistakes or fraud in the prospectus.
  4. His property becomes liable for payment even after his death.
Welcome to LegalVersity.com Q & A, where you can ask questions and receive answers from other members of the community.
...